India’s engineering goods exports to the US experienced an impressive 18% year-on-year growth in January, reaching $1.62 billion. While engineering shipments worldwide expanded at a more moderate pace of 7.44%, the US continued to be India’s leading export destination for these goods, followed by the UAE, according to the Engineering Exports Promotion Council (EEPC).
During the April-January period of the current financial year (FY25), India’s engineering exports to the US climbed nearly 9%, totaling $15.6 billion compared to $14.38 billion in the same period last year. Meanwhile, engineering exports to the UAE saw a sharp 56% rise in January, reaching $610 million, and recorded a cumulative growth of 45% to nearly $7 billion over the same period.
Other major markets witnessing positive growth in Indian engineering exports included Germany, Mexico, Turkey, South Africa, France, Japan, Nepal, and Bangladesh. However, shipments to countries like the UK, Saudi Arabia, Malaysia, China, Italy, and Spain saw a decline.
EEPC India Chairman Pankaj Chadha acknowledged the resilience of India’s engineering export sector despite ongoing global disruptions, including conflicts and rising protectionism in key markets. He noted that the global trade landscape is undergoing significant changes, with over 3,000 new trade restrictions imposed worldwide in 2024 alone. The International Chamber of Commerce’s Global Trade Outlook 2025 also warns of escalating risks to the multilateral trading system.
Chadha further highlighted the challenges ahead for the engineering sector, citing recent US tariff policies as an example of increasing trade barriers. Despite these hurdles, India’s engineering exports have sustained growth for nine consecutive months, although the pace slightly slowed in January to 7.44% from December’s 8.32%.
The primary drivers of year-on-year growth in January were exports of aircraft, spacecraft and parts, electrical machinery, automobiles and components, industrial machinery, iron and steel products, and medical and scientific instruments. Conversely, exports of ships, boats, and floating structures saw a sharp drop, while iron and steel exports continued to decline, mirroring trends from the previous month.
In total, India’s engineering exports during April-January FY25 reached $96.75 billion, marking a nearly 10% increase from the $88.10 billion recorded in the same period last year.
